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A Little Weaker To Start

GILTS

Gilts a little lower with U.S. Tsy futures below levels seen at yesterday’s gilt close.

  • Futures last -22 at 100.54. Pullbacks remain shallow, leaving the bullish technical theme in the contract intact.
  • Yesterday’s high (100.80) protects the Aug 5 high/bull trigger (101.46).
  • Conversely, initial support not seen until the 20-day EMA (99.40).
  • Cash gilt yields are 1-2bp higher across the curve.
  • Headline UK monthly and Q2 GDP data matched expectations. The data shouldn’t move the needle for the BoE.
  • SONIA markets still roughly in line with pre-gilt open levels, covered earlier.
  • The domestic calendar is limited for the remainder of the day, while broader macro focus will fall on U.S. retail sales and weekly jobless claims data.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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